Email communications software, as it turns out, is a highly lucrative venture. Toronto-based ContactMonkey, a platform facilitating the creation, sending, and tracking of internal communications from Outlook and more, has recently secured $55 million in a Series A funding round led by Updata Partners.
This substantial investment, a testament to ContactMonkey’s success, may be attributed to its profitability or the fact that the company was self-funded until recently. Braden Snyder, a partner at Updata, highlighted ContactMonkey’s role in addressing a crucial market gap with a robust and user-friendly solution. He emphasized the importance of effective communication in the remote work era for engaging and retaining talent.
ContactMonkey’s founder and CEO, Scott Pielsticker, revealed that the new funds would be utilized to expand into international markets and double the size of the company’s 80-person team. The focus will be on strengthening the sales and marketing divisions to meet the growing demand for internal email platforms.
Pielsticker explained that the decision to raise funds was driven by the significant market demand worldwide for internal email platforms. ContactMonkey aims to enhance how companies communicate with their employees and believes it is well-positioned to meet this demand.
Before founding ContactMonkey, Pielsticker started Blueback, a taxi car company in London. The inspiration for ContactMonkey arose from recognizing the market’s need for a platform facilitating business engagement through email. The company’s mission is to provide a beautiful, user-friendly product with key data and insights to improve internal communications.
ContactMonkey integrates with popular platforms like Outlook, Gmail, and Teams, as well as SMS and human resources information systems like Workday and ADP. It assists in managing company announcements, alerts, and updates. Through engagement analytics, users can create segmented employee lists, collect feedback, and analyze metrics such as click-through rates and open rates.
While acknowledging competition in the market from platforms like Staffbase and Mailchimp, Pielsticker believes that the investment from Updata positions ContactMonkey strongly to stand out. The impact of COVID-19, with the increased need for effective communication with remote workers, has positively influenced ContactMonkey’s growth. Pielsticker is confident that the investment will provide the company with the necessary resources to navigate any challenges in the market.
